NEW BRUNSWICK (dpa-AFX) - Drug major Johnson & Johnson (JNJ), while reporting sharply lower first-quarter profit despite sales growth, on Tuesday lifted fiscal 2026 earnings and sales forecast for fiscal 2026. The company also announced higher quarterly dividend.
In pre-market activity, the shares were losing around 1.6 percent, trading at $234.00.
Joaquin Duato, Chairman and Chief Executive Officer, said, 'Johnson & Johnson had a strong start to 2026 and is delivering on its promise for a year of accelerated growth and impact.'
For fiscal 2026, the company now projects adjusted earnings in a range of $11.45 to $11.65 per share, with $11.55 in mid-point, and adjusted operational earnings in a range of $11.30 to $11.50 per share, with $11.40 in mid-point.
The company previously expected adjusted earnings in a range of $11.43 to $11.63 per share and adjusted operational earnings in a range of $11.28 to $11.48 per share, with $11.53 and $11.38 per share in mid point, respectively.
In mid point, the company now expects year-over-year growth of 7.1 percent in adjusted earnings and 5.7 percent in adjusted operational earnings, compared to previous view of 6.9 percent and 5.5 percent, respectively.
Annual sales are now expected between $100.3 billion and $101.3 billion as well as operational sales between $99.7 billion and $100.7 billion, with adjusted operational sales growth of 5.6 to 6.6 percent.
The company previously expected sales between $100 billion and $101 billion, operational sales between $99.5 billion and $100.5 billion, with adjusted operational sales growth of 5.4 to 6.4 percent.
In mid point, the company now expects sales of $100.8 billion, an year-over-year growth of 7 percent, compared to previous view of 6.7 percent. Operational sales in mid-point would be $100.2 billion, a growth of 6.4 percent, higher than previous view of 6.2 percent.
Separately, Johnson & Johnson announced that its Board of Directors has declared a 3.1 percent increase in the quarterly dividend to $1.34 per share.
The indicated dividend on an annual basis is $5.36 per share compared to the previous rate of $5.20 per share. The next quarterly dividend is payable on June 9 to shareholders of record at the close of business on May 26.
Further, the firm announced planned Enterprise Business Review for December 8, 2026.
In the first quarter, net earnings fell 52.4 percent to $5.24 billion from last year's $11 billion. Earnings per share were $2.14, down 53 percent from $4.54 last year.
Adhysted net earnings were $6.61 billion or $2.70 per share, compared to $6.71 billion or $2.77 per share a year ago.
The company's sales for the period rose 9.9 percent to $24.06 billion from $21.89 billion last year. On a constant currency basis, sales grew 3.5 percent.
Operational sales growth was 6.4 percent and adjusted operational sales growth was 5.3 percent.
U.S. sales grew 8.3 percent year-over-year to $13.33 billion, and International sales climbed 12 percent to $10.73 billion.
Segment-wise, Innovative Medicine sales increased 11.2 percent to $15.43 billion, and MedTech sales grew 7.7 percent to $8.64 billion.
In Innovative Medicine, growth was driven primarily by DARZALEX, CARVYKTI, ERLEADA, and RYBREVANT/LAZCLUZE in Oncology, TREMFYA in Immunology, and SPRAVATO in Neuroscience.
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